When setting up an estate plan you will be identifying your assets including any collections. Some collections will have great sentimental value and other collections may have significant monetary value.
The hypothetical questions to be confronted – What do we do with great Aunt Matilda’s antique doll collection or Uncle Bart’s cherished assortment of old train timetables? Do they have intrinsic value or only sentimental value? How do we know how the collection was acquired? Do we know how much was paid for the collection?
If the collector has maintained a record and good documentation of the collection, the task of the executor is simplified. There is less likelihood of having the value of the collection either overestimated or underestimated.
Heirs might find documentation of a collection of sets of coins acquired at antique auctions of more interest that the collection of dubious silver candlesticks purchased at garage sales.
This is not to say that the candlesticks may not have a very real monetary value (ala Antiques Roadshow), but the likelihood of the coin collection having a higher value is significantly better. Here is where the opinion of an expert is valuable.
Even a simple card file system can go a long way to help heirs/executor begin to uncover the true worth of a collection.
In a probate situation, it is advisable to get expert advice for any collection that you believe has significant value.
As representative of an estate, there is responsibility to create a detailed inventory of the estate and to preserve valuable objects.
Some of the other duties of an executor of an estate include (but are not limited to) the following:
Locate all legal documents including will.
Notify banks, government agencies, credit card companies, and pension organizations about the death.
Hire/consult with attorney
Apply for Probate. The Probate process can differ depending on jurisdiction.
Create detailed inventory of the estate of the deceased
Manage Property of the deceased. With valuable collections e.g. artwork the process of securing and maintaining the collection safely is paramount.
Notification of interested parties
Locate creditors and Pay valid claims of creditors
Locate and notify heirs
File Tax returns of the estate
Disclosure to the beneficiaries of proceedings
Distribute assets to beneficiaries
Disposal of remaining assets that are not distributed
If in doubt, consult with an attorney to assure that you are handling the Probate Process appropriately.
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